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Bond

Manage Your Property

Updated over a week ago

What is a Bond?

A rental bond is a security deposit that a tenant pays at the start of a tenancy which is then lodged with the relevant state government agency.

The bond plays a vital role in providing peace of mind and protection for you as a landlord. Typically you would ask for up to 4 weeks' rent to be held as a bond and it is important that there is a bond in place at the beginning of every tenancy.

The bond lodgement process is different in each state as there are different rules and regulations regarding bonds.

We are here to guide you through this process.

In this Article:


How Does Bond Work on RentBetter?

RentBetter allows you to collect the rental bond from your tenant through the platform based on our recommendations according to your state.

You can add your bond details and send them through to your tenant to collect either through the RentBetter platform OR outside of RentBetter. Once you have collected the bond, you will need to take the subsequent step of lodging it with the bond authority.

There are three main steps that you need to take when lodging a bond for your tenancy:

  1. Setting up your bond account

  2. Sending the details bond to your tenant

  3. Paying the bond to the bond authority - either you lodge the funds or the tenant pays directly to the bond authority as recommended in some states.

To create and manage your bond, head to the My Properties page and click on 'Lease set up'. You will be taken through the steps to set up your tenancy and during this process, you will be able to set up the bond payment collection.

The recommended way to collect the bond in your state will show at the top of the bond section and you can select your preferred collection method.

✨ HANDY TIP ✨ - Set up your Bond Account online in advance with your local authority so that there are no delays and you're ready when you find a tenant.

Sometimes Bond registrations can take up to two weeks to get set up once you apply online with the state authority so it's wise to get yourself registered ASAP. We recommend doing this as soon as you've set up your property ad so that you're ready to go without delay.


How to Set up and Collect the Bond Payment Through RentBetter

Collecting the bond payment through the platform is simple but it's important to remember, RentBetter does not lodge the bond for you.

When you collect the payment through the platform, the tenant will be prompted to make that payment through their tenant account. Once the payment is successful a receipt is issued to record the payment and the funds are transferred directly to your bank account. You will then proceed to lodge the bond with the bond authority in your state.

Step 1: To set up your tenancy, navigate to the 'Lease set up'. Within the 'payments' section, you can scroll down to find the bond details.

Step 2: To collect the bond through the RentBetter platform, choose the first option as shown below, where the tenant is to provide the rental bond. Select "The landlord or another person"

Step 3: In the section underneath, you will select that you'd like RentBetter to collect the bond payment:

Step 4: Once you send the lease to your tenant, the tenant will be invited to get set up on RentBetter. After they have signed the lease and added a payment method, they will see the bond payment step on their dashboard:


How to Set up and Collect the Bond Payment OUTSIDE of RentBetter

If you choose to collect the bond payment outside of RentBetter, whether that is directly to your account or by asking the tenant to pay to the bond authority as recommended in some states, that's perfectly acceptable. Just remember to select this option during the lease set-up process:

Step 1: To set up your tenancy, navigate to the 'Lease set up'. Within the 'payments' section, you can scroll down to find the bond details.

Step 2: To collect the bond outside of RentBetter, choose either the first option or third option as shown below under the section 'where the tenant is to provide the rental bond to'.

Step 3: Once you send the lease to your tenant, they will be invited to get set up on RentBetter. The bond step will show on their dashboard and they will be able to view the details on where to pay.

Step 4: The tenants should then make the payment either to your account or if requested, directly to the bond authority. Once paid you can mark this as paid in your account and upload any receipts or documentation once the lodgement is complete.


Setting up the Bond if it's already been paid by the tenant

If you have an existing ongoing tenancy, the bond may have already been paid previously. RentBetter allows you to record the bond details for you and the tenant in the platform so that no request is sent to the tenant to make payment when they set up.

Step 1: Navigate to the My Properties page and click on 'Lease set up'

Step 2: On the 'Payments' step in the setup you will find the bond details. Enter the bond amount and due date and under the question 'Has the bond already been paid?' select 'Yes'

Step 3: Confirm the details of the bond, upload any attachments and then save it. Once you send it to the tenant they will be able to see that the bond has been marked as paid and no request will be made for payment.


How to Lodge the Bond

Once you have collected the bond payment from your tenant (either through RentBetter or outside of RentBetter, you will need to lodge the funds.

Please refer to the links below for guides specific to each state regarding bond lodgement.


Viewing Your Bond Details

Once you've set up the bond, you can easily view its details and status. Simply click on 'Lease set up' and scroll down to the bond section. Alternatively, you can navigate directly to the bond section from your property card by clicking on the 'bond' button in the list inside the card.

This will direct you to the bond page, where you can track and monitor the bond's progress, as well as create new bond requests or details.


Bond FAQs

Can my tenant use the bond to pay the final rent?

In some circumstances, the bond is used for the final rental payment however it is not the recommended approach. Rent is considered rent, and the bond is considered the bond. If you allow the bond to be used for the final rental payment, you risk removing the security deposit/protection concept at the end of the lease, and if something were to go wrong, the money has been allocated to rent and you would be out of pocket.

What is the maximum bond amount?

Typically a bond of 4 weeks' rent is held by the bond authority. Each state and territory will have specific regulations about the maximum amount permitted. We’d encourage you to visit the following pages for further information:

Do I have to lodge the bond? Can I just keep it safe sitting in my bank account?

In all states except the Northern Territory, it's a legal requirement to lodge the bond with the bond authority. Failure to do so can result in severe financial penalties.

Do I need to set up a bond account even though I’m collecting on RentBetter?

Yes in most states of Australia (excluding the NT) you will need to set up a bond account so that you can lodge the bond. On RentBetter you can collect the payment from the tenant and then once you’ve received the funds, you will take the subsequent step of lodging them with the bond authority.

How do I transfer the bond from my agent?

If you were previously with a real estate agency, the rental bond will have been lodged by the agency and you will need to complete a transfer form. This is usually supplied and signed off with your agent.

To complete the bond transfer process, you'll need to have created a bond account as a self-managed landlord. You can view the steps on how to do that in the article above. Once the changes are registered with your local bond authority, the bond can then be transferred to your account/name which is held with the authority.

Can I request to increase or 'top up' the bond paid by the tenant?

Generally, the rental bond paid by the tenant cannot be increased. In some states like QLD and WA, it's permitted to collect an additional bond amount when there's a rent increase.

If your state allows bond top-ups, you can use the bond feature within the RentBetter platform to add additional bonds and send them to your tenant for payment.

Can I charge a Pet bond?

Most states in Australia do not allow you to collect an extra bond for pets.

WA is currently the only state where you can charge an additional bond for pets and we have included this in the platform. The pet bond amount cannot exceed $260 and this does not apply to assistance animals. You can set the amount of the Pet bond you'd like to charge and it will be included in the total bond amount that the tenant has to pay.

How can I claim or refund the bond to my tenant at the end of the tenancy?

When the bond is lodged with your local authority, you will be issued a unique lodgement number to track the bond for your property. At the end of the lease, you can organise for the bond to be released or to claim an amount from that bond.

In some states, the tenant can claim their bond directly with the bond authority to release their funds. In other states, it requires both parties to agree before the bond can be released.

Read more in this article on claiming the bond - https://rentbetter.com.au/article/making-a-claim-for-the-bond


Need further assistance?

Have more questions on bond? Reach out to our friendly team via the support chat or email info@rentbetter.com.au and we’ll be happy to help.

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